The cryptocurrency sector faced significant challenges in May, with losses totaling $42.6 million due to various security breaches. The largest chunk of these losses, approximately $20.7 million, was attributed to flash loan attacks. Sonne Finance bore the brunt of these attacks, losing a staggering $20 million, while TLN Protocol suffered losses amounting to $746,000. Additionally, GPU and Saturn Token also faced substantial losses of $32,394 and $8,343, respectively.
Exploits and Exit Scams
Exploits also played a significant role in the sector’s losses, accounting for approximately $19.7 million. Gala Games recorded the most substantial loss at $21.6 million, followed by AlexLab at $4.3 million, Pump Fun at $1.9 million, GNUS.ai at $1.28 million, and Orion at $947,000. Furthermore, exit scams contributed around $1.8 million to the overall losses, with Trees On Sol leading the pack at $1.11 million.
Interestingly, flash loan attacks seem to follow a pattern of occurring in odd-numbered months. January, March, and May saw significant losses of $15.3 million, $21.9 million, and $20.7 million, respectively. In contrast, losses in February and April were significantly lower. The year-to-date figures for 2024 reveal that over $473 million worth of cryptocurrency has been lost to hacks and rug pulls across 108 incidents.
The decentralized finance (DeFi) market continues to remain a primary target for hackers, with centralized finance companies experiencing no attacks in 2024. Last year, over $2 billion was lost to hacks and exploits, indicating a worrying trend in the sector. Ethereum and BNB Chain were the most targeted chains in May 2024, collectively representing 62% of the total losses across targeted chains.
Despite efforts to enhance security measures, crypto hacks and exploits remain a persistent issue. In a recent hack, Japanese cryptocurrency exchange DMM Bitcoin reported a loss of 48 billion yen ($305 million) in Bitcoin (BTC). The exchange stated that 4,502.9 BTC “leaked” out due to the security breach, underscoring the need for robust security protocols in the crypto sector.
The crypto sector continues to grapple with significant security challenges, leading to substantial financial losses. As the sector evolves, there is an urgent need for enhanced security measures and increased vigilance to safeguard against malicious attacks and exploitation.